Mortgage Calculator
Mortgage Calculator - a browser-based finance utility.
Browser tool
About Mortgage Calculator
The monthly figure a lender quotes and the amount that actually leaves your account each month are rarely the same number, because the quote is principal and interest while the payment usually also carries tax and insurance. Free, and asks for no email address. Your deposit and rate are used by the browser and by nothing else.
How to use it
- Enter price, deposit, rate and termThe deposit reduces the amount borrowed, which is the single largest lever on everything downstream.
- Add the other costsProperty tax and insurance, where they are collected with the payment rather than billed separately.
- Read both figuresPrincipal and interest on its own, and the full monthly outgoing, because budgeting needs the second.
Why the early years feel like nothing is happening
Interest is charged on the balance outstanding, which is near its maximum at the start, so the earliest payments are overwhelmingly interest and barely reduce what you owe. The crossover — where more of the payment goes to principal than to interest — arrives surprisingly late on a long term. It is also why an overpayment in year two is worth far more than the same amount in year twenty.
What it does not do
- A fixed rate for the whole term is assumed. Variable and tracker products, and fixed periods that revert to a standard rate, all behave differently.
- Fees rolled into the loan, early repayment charges and mortgage insurance are not modelled.
- Arithmetic on the figures you supply, and nothing more. It has no view on affordability and no idea what any lender would put in front of you.
Questions people ask
- Why is a lender quoting a different monthly payment?
- Usually because the quote includes or excludes something this does not: fees added to the balance, insurance, or a different day-count convention. Compare like with like by checking whether the quote is principal and interest only.
- Is a larger deposit or a shorter term better?
- They do different things. A larger deposit reduces the balance interest is charged on; a shorter term raises the monthly payment and cuts total interest sharply. Model both here and weigh the monthly figure you can sustain against the total cost.
Questions about ToolsVerse itself — privacy, cost, what happens to your files — are answered in the frequently asked questions.
Related tools
The tools people most often need alongside Mortgage Calculator.
Can’t find the tool you need?
Tell us what you’re looking for and we’ll consider adding it.